As for demand from the U.S., Reuters noted that there's lots of unease in the country over a possible interest rate hike by the U.S. Federal Reserve. November's presidential election is also causing uncertainty.

In a note released Friday, he said the federal government's spending could give the economy a lift in the second half of 2016 and the the first few months of next year.

The boost comes as Canada's debt-to-GDP ratio sits around the 30 per cent range.

Japan, on the other hand, is about to start spending more despite a debt-to-GDP ratio of 130 per cent — meaning its national debt is worth more than its national economy.

The BMO economist also praised Canada's stable governance at a time when the U.K. is dealing with the Brexit fallout, and when the U.S. election is grappling with a lack of party confidence in either presidential candidate.